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Category Archives: TDS Software Mumbai

There are 7 types of corrections namely C1, C2, C3, C4, C5, C9, Y. The following table briefly talks about each correction type:

Type

Corrections in:

C1

Deductor details: All details of deductor except the TAN No. can be modified.

C2

Challan details: All details of the challan can be modified. C2 can include C1 type correction

C3

Deductee details: All details except the PAN number of the Deductee can be modified. One may add/delete/modify a deductee in the existing challan.

C4

Salary Details: This type of correction is only applicable to correction of 4thQuarter statement of Form 24Q. All the details of the salary can be modified here except the PAN number of the employee. Here there is no provision of updating the record, a record has to be deleted and a new record has to be added with updated details.

C5

PAN: In this type of correction deductee PAN is updated. When Pan is updated for Salary record the same will also get updated in the deduction record. PAN has to be updated quarterwise i.e a separate correction return needs to be filed for each quarter where the PAN number is mentioned incorrectly.

C9

Addition of new Challans and/or Deductions: Any new addition of Challan and/or deductions forms Correction type C9. When a deduction is added with Tax amount zero then automatically a NIL challan is generated

Y

TAN Number: This correction type is to modify the TAN number or when a challan is added or split by mistake

It may be noted the C1,C2, C3,C4,C5 and C9 type of correction may be made in the same single correction return whereas for Type Y a separate return needs to be filed.

CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.

User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).

Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.

The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.

Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.

PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.

The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Validation for non-update of Deductee/Collectee records from Annexure I and Annexure ll in TDS/TCS correction statements when Form 26A/27BA has been generated.

Deductee/Collectee against which Form 26A/27BA has been generated at Income Tax Department where update will not be allowed on certain fields in Annexure I of Form 24Q, 26Q and 27EQ while submitting correction statement.
The certain fields are as below:-
(1) PAN of Deductee/Collectee
(2) Amount of Payment/Credit
(3) Total tax Deducted (Tax + Surcharge + Education cess)
(4) Section code

Deductee against which Form 26A/27BA has been generated at Income Tax
Department where no update or deletion of record will be allowed in Annexure ll of Form 24Q while submitting correction statement.

Such Deuctee/Collectee records will be present in the TDS/TCS consolidated file
with a flag value ‘F’ against the field ‘Mode’ as per specified file format.

This is applicable from Financial Year 2007-08 onwards.

e-TDS/TCS correction statements received with the changes not desired as per
above, will be rejected at TDS CPC of Income Tax Department.

Validation for “PAN of Landlord” field has been revised for form 24Q-Q4 under Annexure II (i.e. Salary details) from F.Y. 2016-17 onwards.

Existing Validation of structurally valid PAN (for field no. 41, 43, 45 and 47 as per data structure) has been relaxed. These fields may contain any value from the below mentioned when the landlord does not have PAN.
1. GOVERNMENT : This is applicable when landlords are Government organizations (i.e. Central or State).
2. NONRESDENT : This is applicable when the landlords are Non-Residents.
3. OTHERVALUE : This is applicable when the landlords are other than Government organization and Non-Residents.

Validation for non-update of Deductee/Collectee records from Annexure I and Annexure ll in TDS/TCS correction statements when Form 26A/27BA has been generated.

Deductee/Collectee against which Form 26A/27BA has been generated at Income Tax Department where update will not be allowed on certain fields in Annexure I of Form 24Q, 26Q and 27EQ while submitting correction statement.
The certain fields are as below:-
(1) PAN of Deductee/Collectee
(2) Amount of Payment/Credit
(3) Total tax Deducted (Tax + Surcharge + Education cess)
(4) Section code

Deductee against which Form 26A/27BA has been generated at Income Tax Department where no update or deletion of record will be allowed in Annexure ll of Form 24Q while submitting correction statement.

Such Deuctee/Collectee records will be present in the TDS/TCS consolidated file with a flag value ‘F’ against the field ‘Mode’ as per specified file format.

This is applicable from Financial Year 2007-08 onwards.

e-TDS/TCS correction statements received with the changes not desired as per above, will be rejected at TDS CPC of Income Tax Department.

Incorporation of latest File Validation Utility (FVU) version 5.4 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.150 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).

TRACES has provided the functionality of “Online Correction” where deductor can perform correction of TDS/TCS statements online. Deductor is required to Login to TRACES, Go to ‘Default’ Menu, Click on “Request For Correction”.

Following are the various facilities available through Online Correction:

CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.

User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).

Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.

The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.

Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.

PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.

The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

All TIN-FCs & PAN Centres are hereby informed that the Income Tax Department (ITD) has prescribed certain changes in the existing design of the PAN Card. Accordingly, with effect from January 1, 2017, PAN cards are being printed as per the new design specifications approved by ITD.

Specimen of the PAN card as per new design is as under:

New features:

(i) Quick Response (QR) code having details of the PAN applicant is printed on PAN card for enabling verification of the PAN Card;

(ii) Legends have been incorporated for particulars Name, father’s, and date of birth fields.

(iii) Position of PAN & signature has been changed.

All TIN-FCs and PAN Centres are advised to take note of the above and advise applicants in the events of queries received from the applicants.